How to choose a Forex Broker?
For new traders, choosing a Forex broker is a big first step
into the Forex world. The
broker you choose
can forever affect your view of the Forex trading world, when
taking rebates in to account, the task can become even more
complex.
Beginner traders might give high regard to the rebate rate a
broker provides, but this is only one of a long list of factors,
which need to be considered when choosing your first broker. As a
general rule, RebateMyPips discourages choosing a broker solely for
the
best rebate rate. Although the rebate rate can and
will affect the final spreads you trade with, this should not be
the major factor in your decision.
There are several factors to consider when choosing a
broker:
The most important factor when choosing a broker is their
regulating authority. Personally, when handing over thousands of
dollars to someone, I would like to know that my money is safe.
Different countries have different regulatory authorities. Here is
a partial list of the most prominent regulatory authorities.
- NFA (National Futures Association) and CTFC
(Commodity Futures Trading Commission) - The official regulatory
bodies in the United States.
- FSA (Financial Services Authority) - The
official regulator in the United Kingdom.
- ASIC (Australian Securities and Investment
Commission) - The official regulator in Australia.
- SFBC (Swiss Federal Banking Commission) - The
official regulating authority in Switzerland.
- BaFIN (Bundesanstalt für
Finanzdienstleistungsaufsicht) - The official regulator in
Germany.
- AMF (Autorité des Marchés Financiers) - The
regulatory authority in France.
- CySEC (Cyprus Securities and Exchange
Commission) - The regulatory authority in Cyprus.
Before entrusting your hard-earned cash with any broker, we urge
you to make sure that they are regulated by one of these regulatory
authorities. As a service for RebateMyPips customers, we make your
life easier by listing only regulated and verified brokers. When
choosing one of the brokers offered by RebateMyPips, you can rest
assured that your money is safe.
As a trader, you will be subject to spreads and/or commissions
for every trade you make. It is important to select a broker with
the cheapest transaction cost. When considering the spreads and/or
commissions charged by a broker, you should also take in to
consideration the rebate rate RebateMyPips offers for that broker.
On the RebateMyPips website we have provided our customers with a
simplebroker comparison table, to aid you in the comparison. Please
consider that a higher rebate rate does not translate directly to
lower spreads. We always recommend that you compare brokers` spread
tables and subtract the rebate rate to see the effective spreads
you will pay with each broker. For example, a broker with loose
spreads and a higher rebate rate might end up being cheaper than a
broker with tighter spreads and a small rebate rate. Doing your
homework is important here and as always, the RebateMyPips support
staff is here to aid you in your decision. You are always welcome
to contact us with any questions you may have.
Execution is an important factor when selecting a broker, as it
is tied in to the fundamental way a broker operates. With most
regulated brokers, the execution should be immediate with normal
market conditions. Why is execution rate important? Well, this ties
in to the way the Forex market works in general and is outside the
scope of this article.
For the purpose of this article, execution speed is the difference
between the prices you bid and the rate your order is actually
filled in. A large difference, i.e. slow execution, could make
winning a trade very difficult. This is even more important if you
plan on scalping.
There are many different trading platforms available today. A
side from the industry leader MetaTrader, many brokers have their
own trading platforms, and most brokers offer a selection of
several platforms. When choosing a broker, you should consider the
trading platforms they offer. MetaTrader is a good platform option
to have. If you learn MetaTrader, you will be able to trade with
most brokers, since most brokers support MetaTrader. If you are on
the road a lot, you might want to consider a broker with a mobile
platform. iPhone, iPad and Android trading platforms are gaining
popularity with many brokers, and allow you to trade anywhere. Some
brokers also provide a web-based trading platform. This allows you
to access your account any time, even if you don't have access to
your own computer and/or mobile device.
When dealing with your hard-earned cash, you should always be in
control. If you have any issues with the trading platform, deposit,
withdrawal, etc. Your broker should have a live support staff
ready to resolve any issues you might have. Since you can trade
24/7 with most brokers, you should make sure that there is a 24/7
support staff, ready to assist you with any questions or issues you
might have. RebateMyPips customers also have the added advantage of
having our skilled account managers, on-hand, to assist with any
issues. Through our relationship with the brokers we represent, we
are able to assist you in resolving issues you have with your
broker.
Choose the
Top Forex Brokers Right Now!
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